Ouster Q2 Earnings Call Highlights
Ouster (NASDAQ:OUST) reported second-quarter revenue of $55 million, up approximately 56% from a year earlier, as demand from industrial and smart-infrastructure customers helped the lidar and perception technology company ship a record number of sensors.
Chief Executive Officer Angus Pacala said the company shipped more than 17,000 sensors during the quarter, including more than 9,000 lidar sensors and over 8,000 camera sensors. The results marked Ouster’s 14th consecutive quarter of product revenue growth, according to Pacala.
The industrial vertical was Ouster’s largest revenue contributor during the quarter, followed by smart infrastructure, Chief Financial Officer Ken Gianella said. Applications included warehouse automation, yard logistics, port automation, mining and intelligent transportation systems.
Rev8 production ramp and customer orders
Ouster introduced its Rev8 lidar platform during the quarter and is scaling production lines, with production volumes expected by the end of the third quarter. Pacala characterized Rev8, which includes native color lidar capabilities, as the company’s most important product release to date.
The company said customer response to the platform has included multiple orders worth more than $1 million from customers including a heavy-machinery manufacturer, an autonomous agriculture-equipment developer and an autonomous-vehicle provider. Ouster also received an order from the Utah Department of Transportation for what Pacala called its largest lidar deployment to date, covering several hundred intersections across the state.
Pacala said Rev8 sales in the second quarter were limited to prototype volumes, while the company expects production shipments to rise sequentially in the second half of 2026. He said Ouster expects the transition from its Rev7 generation to Rev8 to take about two years, noting that some customers will continue using Rev7 because it has already been integrated and certified in their systems.
Ouster expanded its manufacturing partnership with Benchmark to support Rev8, establishing capacity that ultimately exceeds 100,000 units annually. Pacala said the company’s lidar unit volumes were up 70% year over year and that Ouster expects to continue expanding capacity as demand grows.
Smart infrastructure deployments expand
Smart infrastructure continued to be a focus area. Ouster said New Jersey’s Department of Transportation deployed its BlueCity traffic-management system at 42 highway locations around MetLife Stadium in advance of the 2026 FIFA World Cup. The company also deployed BlueCity at 30 additional intersections in the Atlanta area, including locations around Mercedes-Benz Stadium.
Pacala said the systems are intended to provide traffic monitoring, data analytics and real-time safety alerts after the World Cup concludes. Ouster’s BlueCity platform is designed to create digital traffic twins, while the company said its edge-based privacy features are intended to reduce collection of identifying information.
The company said Rev8’s longer-range capabilities expand its opportunity in higher-speed and wider-roadway environments. Pacala said North America has roughly 300,000 signalized intersections, while Ouster has deployed systems at hundreds of intersections and is moving toward thousands.
Gianella said BlueCity and Gemini products represented about 15% of sales at the beginning of the year and that Ouster expects this software and solutions category to become a larger share of revenue over time.
Stereolabs integration supports camera and robotics strategy
Ouster said its acquisition of Stereolabs contributed both strategic and financial value during the quarter. The company launched the ZED X Nano camera, which Pacala described as Stereolabs’ most successful launch and a product aimed at smaller industrial and robotics applications.
Pacala said demand for stereo and monocular camera products has been particularly strong in humanoid robotics and robotic manipulation. He added that humanoid robots generally use more cameras than lidar sensors because cameras have lower average selling prices and are positioned directionally across a robot’s field of view.
While humanoid robotics is currently a camera-first market, Pacala said Ouster sees lidar opportunities as it develops additional form factors. He also cited cross-selling opportunities between Ouster’s legacy lidar customers and Stereolabs’ industrial and heavy-equipment customers.
The company also said it deepened its collaboration with NVIDIA, bringing Rev8 to NVIDIA DRIVE and Jetson platforms. Ouster said related toolkits and drivers are designed to support direct data ingestion and NVIDIA’s Jetson Orin and Thor computing platforms.
Margins, financing and outlook
GAAP gross margin was 49%, compared with 45% in the prior-year quarter. Gianella said the latest figure included a one-time refund that added approximately 1,000 basis points to gross margin. He said Ouster does not expect such benefits to recur and continues to view a 35% to 40% gross-margin range as appropriate in the near term on a normalized basis.
GAAP operating expenses were $47 million, up about 10% year over year, reflecting a full quarter of Stereolabs integration, product launches and investments in Ouster’s Physical AI solutions portfolio. Adjusted EBITDA was negative $4 million, an improvement of approximately $1 million from the prior-year quarter.
- Second-quarter revenue: $55 million
- Year-over-year revenue growth: approximately 56%
- Sensors shipped: more than 17,000
- GAAP gross margin: 49%
- Adjusted EBITDA: negative $4 million
- Quarter-end cash, restricted cash and short-term investments: $263 million
- Debt: none
Ouster ended the quarter with $263 million in cash equivalents, restricted cash and short-term investments, including roughly $98 million raised through its at-the-market program. The company subsequently completed a common-stock offering that generated approximately $191 million in net proceeds and left it with about 72 million shares outstanding.
Gianella said Ouster does not expect to need additional capital to fund its current operating plan on its path to profitability. For the third quarter, the company forecast revenue of $54.5 million to $57.5 million, while maintaining its full-year revenue expectations.
About Ouster (NASDAQ:OUST)
Ouster, Inc is a leading provider of high-resolution digital lidar sensors, software and services designed to enable advanced perception capabilities across a range of industries. Headquartered in San Francisco, California, the company develops modular lidar solutions that capture precise three-dimensional data in real time, supporting applications from autonomous vehicles and robotics to mapping, smart infrastructure and industrial automation.
The company’s core product lineup features multi-beam digital lidar units available in various form factors, including compact models for robotics and drones and larger units for automotive and mapping systems.
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